In this insightful discussion, the speaker Alex Hormozi delves into the five levels of competence and how they affect success in various aspects of business and personal growth. He emphasizes the importance of personal accountability in leveraging educational programs, workshops, and courses for success, rather than attributing outcomes to external factors or instructors. Hormozi challenges the mindset that external resources are responsible for individual success, asserting that it's the proactive and positive attitude of the learner that determines the return on any investment. He shares anecdotes to illustrate the transformative potential of adopting a proactive approach, including stories of clients who shifted from a negative, passive stance to a positive, active one, leading to significant personal and professional achievements. Hormozi concludes by encouraging listeners to replicate proven methods before innovating and to persist in learning, with the assurance that with the right mindset, success is an inevitability.
Understanding Levels of Competence
- The speaker introduces a framework of five levels of competence.
- These levels apply to various business domains including education, customer engagement, and vendor relationships.
- The framework is intended to help individuals and businesses improve and grow.
- The speaker emphasizes the importance of personal accountability for success, rather than attributing it to external factors or quality of programs.
"I break down the five levels of competence as I see it and how it can apply to different domains in your business and how it can use that framework to level yourself up and get your customers more successful, get your employees more successful, and make yourself more successful."
- This quote outlines the speaker's intention to provide a framework that can be applied across different aspects of business to enhance success.
The Role of Personal Accountability in Success
- The speaker believes that success is not dependent on the program or course but on the individual's effort to make it work.
- They stress that asking whether a program will work indicates a lack of personal accountability.
- The speaker has experienced a positive return on investment (ROI) from all purchases, regardless of the quality of the source, attributing it to their own efforts.
"You are going to be the thing that makes it work."
- This quote emphasizes the speaker's belief that the individual's actions and mindset are the key determinants of success, not the external resources or programs.
Five Levels of Competence
Positive Active Competence
- Represents the highest level of competence.
- Characterized by an unwavering belief that success is possible unless proven otherwise by physical laws or concrete evidence.
- Individuals at this level challenge others to prove why they cannot achieve something, rather than doubting their ability to succeed.
- They adopt the mindset of being the best student regardless of the teacher's competence.
"No one has proven that it cannot be done."
- This quote exemplifies the mindset of individuals with positive active competence, who require evidence of impossibility before accepting that something cannot be achieved.
Positive Passive Competence
- This level includes individuals who are inspired by others' achievements and believe they can replicate that success.
- They are considered "A minus players" who are willing to follow proven paths to success.
- The speaker views this level of competence positively, as it involves learning from others and applying it to one's own endeavors.
"Okay, he did it, so I can do it."
- This quote reflects the positive passive competence mindset, where individuals are motivated by the success of others and believe they can achieve similar outcomes.
Neutral Passive Competence
- Describes individuals who are open to seeing if something works without actively pursuing success.
- They do not commit to proving their ability to succeed or follow others' examples but instead take a wait-and-see approach.
- The speaker suggests that most people operate at this level of competence, which can result in mediocrity.
"Let's see if it works."
- This quote captures the neutral passive approach where individuals are willing to try but do not actively ensure their success.
Negative Passive Competence
- Characterized by a pessimistic attitude where individuals doubt that success achieved by others can be replicated in their own lives.
- Individuals at this level often do not fully commit to the actions necessary for success.
- The speaker shares an anecdote of a salon owner who did not properly implement a campaign and blamed the program for the lack of success.
"It might work for other people, but it probably won't work for me."
- This quote demonstrates the negative passive competence mindset, where individuals harbor doubts about their ability to succeed, even when others have done so.
(Note: The transcript provided does not include the fifth level of competence or its description, so it cannot be included in the study notes.)
Theme: Acknowledging Personal Responsibility in Failure
- Discusses the importance of accepting personal responsibility when a strategy or program does not yield the desired outcome.
- Emphasizes that blaming external factors or the program itself is unproductive.
- Encourages the individual to recognize their mistakes and learn from them to improve future performance.
- Highlights the need for adherence to the specific steps of a program for success.
"You want me to say that it's my fault? I was like, you didn't do it. You didn't do it, right. So you just did something else. And. Yeah, that something else didn't work, because that's not what the program is."
- This quote illustrates the speaker confronting someone who failed to follow a program correctly and is attempting to shift blame away from themselves.
"Now you can do it again. And you can do it right. Cause you know what? You messed up."
- Here, the speaker is encouraging the individual to acknowledge their mistake, take responsibility, and attempt the program again with the correct approach.
Theme: Negative Passive Approach to Challenges
- Describes a mindset where individuals doubt the effectiveness of a strategy or program for themselves, despite it working for others.
- Points out that this attitude often leads to a self-fulfilling prophecy of failure.
"That's negative, passive. That's like, it might work, but it probably won't work for me."
- The quote defines the "negative passive" mindset as one where a person believes they are an exception to a generally effective rule or program.
- Mentions two audiobooks available for free as part of the podcast promotion.
- Provides information on additional free courses available on a website, encouraging listeners to follow the steps for success.
"I have two books, uh, they actually. Audiobooks that are for free, that I have here, uh, on this podcast starting at 579, it's my $100 million offers and $100 million leads."
- This quote is an advertisement for free audiobooks related to the podcast's content.
"If you just follow the steps, prove why it will work for you, and it will."
- The speaker is promoting free courses and encouraging listeners to engage with the material by explaining how it can work for them.
Theme: Negative Active Approach to Challenges
- Discusses a mindset where individuals actively seek to prove that a strategy or system will not work specifically for them.
- Identifies this as the lowest level of customer engagement, characterized by a defeatist attitude and a belief in being uniquely disadvantaged.
- Suggests that this mindset is often tied to a person's identity, making it difficult for them to accept responsibility for their failures.
"This is negative active. I can prove that this will work for everyone but me."
- The quote describes the "negative active" mindset as one where a person is determined to demonstrate that success is unattainable for them, despite evidence to the contrary.
"It's so much more difficult to accept that all of that pain and suffering that you've been through is 100% your fault."
- This quote highlights the challenge individuals face in accepting personal responsibility for their failures, instead of attributing them to external factors.
- Explores the potential for individuals with a negative active mindset to dramatically shift their perspective and become highly successful.
- Shares anecdotes of individuals who have made this transformation by adopting a positive approach and fully committing to a program.
- Emphasizes that the same system can yield vastly different results depending on the individual's attitude and execution.
"I actually find number five people very, very interesting because they, in my opinion, have the highest potential to jump from five all the way to one."
- The speaker finds individuals with the most negative mindset interesting due to their potential for a significant positive transformation.
"Same system, same gift card play, same advertising, same gym model, different approach, different level of competence showed up and executed an entirely different way."
- This quote illustrates that the same strategy can lead to different outcomes based on the individual's approach and execution.
"Do you want to be right and fat? Or do you want to, or do you want to? Do you want to get skinny? I was like, which one matters more to you? Being right or being thin?"
- The speaker challenges an individual to prioritize their goals over their need to be right, suggesting that a change in mindset can lead to achieving desired results.
"And the thing is, is that when you see a level five turn into a level one, you're like, oh, my God. And the thing is, they become absolute ambassadors, brand champions for you."
- The quote reflects the speaker's amazement at the transformation of someone from the most negative to the most positive engagement, becoming fervent supporters of the program.
Key Theme: The Power of Choice and Outcome in Business
- Emphasizes the importance of decision-making in achieving desired outcomes.
- Highlights the distinction between wanting to be right versus achieving a specific result.
- Encourages business owners to focus on what they want to accomplish rather than proving themselves right.
"Sometimes you just have to say, do you want to be right or do you want this outcome? I'm cool either way, but you're the one who has to live with it."
- This quote suggests that in business, one must prioritize their goals over the need to be correct, as the consequences of their choices will ultimately affect them.
Key Theme: The Role of Mentors and Action in Success
- Compares Morpheus from "The Matrix" and Yoda from "Star Wars" as guiding figures.
- Emphasizes the importance of taking definitive action over merely going through the motions.
- Encourages replacing the mentality of 'trying' with the resolve to 'do'.
"Stop trying to hit me, and hit me."
- This quote from Morpheus in "The Matrix" is used to illustrate the necessity of moving beyond attempts and actually achieving success.
Key Theme: The No-Fail Mindset and Belief in Possibility
- Discusses the concept of a no-fail situation and the belief that if someone else can do something, it's also possible for you.
- Encourages a mindset of possibility and determination, even if no one has previously achieved a certain goal.
- Suggests that believing in the possibility of success eliminates the potential for failure.
"If someone else can do it, so can I, then there is zero possibility of failure."
- This quote emphasizes the idea that success is attainable if someone else has achieved it, and adopting this belief removes the fear of failure.
Key Theme: The Levels of Success and Personal Development
- Describes a pyramid of levels indicating where one might stand in various life domains.
- Advises examining areas of success and applying the same mindset to areas of struggle.
- Highlights the importance of self-reflection in personal growth and success.
"Are you level one? Are you level two, level three, level four? And are you in different places in different domains?"
- This quote prompts self-assessment regarding one's position on a metaphorical pyramid of success across different aspects of life.
Key Theme: The Nature of Unequal Outcomes in Education
- Explores why people have different levels of success despite starting from the same point.
- Suggests that the accumulation of skills and experiences contributes to success.
- Highlights the misconception that only the most recent learning experience is responsible for success.
"The number of skills someone has going into an education process, program, whatever predicts their success."
- This quote suggests that the breadth of skills a person possesses before starting an educational program is a predictor of their success.
- Discusses how skills build upon each other and contribute to the ability to succeed in more advanced tasks.
- Emphasizes the value of meta skills in filling gaps where instructions or knowledge are vague.
- Argues that people often overlook the foundational skills that enabled them to achieve advanced understanding.
"Skills and education build on themselves."
- This quote underscores the cumulative nature of skills and education, where each level of learning builds upon the previous one.
Key Theme: Addressing the Gaps in Education and Skill Levels
- Examines the disparities in education levels and how they affect the ability to progress.
- Discusses the importance of having foundational skills to succeed in higher education.
- Encourages individuals to recognize their own gaps in knowledge rather than blaming the educational material.
"You might be a level four of education here, but a level one at one of the steps, and then all of a sudden it, quote, doesn't work for you, but it's because you actually have a remedial level of education on that step."
- This quote highlights the need to identify and address gaps in one's education that may hinder progress in more advanced learning.
Key Theme: Literacy and Learning
- Points out that a significant percentage of people struggle with basic literacy, affecting their overall ability to learn.
- Suggests that failures in learning may be due to a lack of foundational skills rather than the quality of the educational material.
"30% of people can't read good. Like, they're just. They're not even. They're not even literate."
- This quote brings attention to the issue of literacy as a fundamental skill that is necessary for further learning and success.
Key Theme: Learning from Failure
- Proposes that even in the worst-case scenarios, there is value in learning what not to do.
- Emphasizes that every experience, whether successful or not, contributes to one's skill set and knowledge.
"Even in the most counterexample, where something's absolutely, like, just absolute dog shit because it does happen, right. I think you can still learn what not to do."
- This quote suggests that there is a lesson to be learned from every experience, including those that are negative or unsuccessful.
Inversion Thinking in Learning from Experiences
- Inversion thinking involves analyzing negative experiences to understand what not to do.
- By examining failures or poor examples in various aspects like marriage, parenting, or business, one can identify what to avoid.
- This approach allows for learning from both direct experiences and their inverses.
- Innovative ways to ruin an experience can lead to learning how to create a positive one by doing the opposite.
"Sometimes it's using inversion thinking of, like, okay, what are all the things that made this horrible? And then do the exact opposite of that."
- This quote highlights the concept of inversion thinking, where understanding the negative aspects of an experience can guide one to make better decisions by avoiding those aspects.
Learning from Adversity and the Invictus Quote
- Adversity should not be an excuse for lack of success; champions succeed regardless of conditions.
- The quote from the movie "Invictus" exemplifies the idea that one should strive to perform at their best in spite of challenges.
- Winning is about creating success despite external circumstances, much like how athletes compete at high levels despite injuries or setbacks.
- This mindset can be applied to assess and motivate teams and individuals in business and personal growth.
"The truth is, sir, you never played 100%. And Mandela responds, as in sports, as in life."
- The quote illustrates the principle that in both sports and life, one should aim to give their best effort regardless of the situation, implying that full potential is never truly reached but should always be the goal.
The Concept of Winning and Team Assessment
- Winners focus on achieving success rather than proving others wrong.
- A winning mindset can be assessed in team members, ranging from those who doubt success to those who are determined to make it happen.
- Personal drive to be the best in any endeavor is crucial for success.
- The speaker emphasizes the importance of being the best student or participant in any learning situation, regardless of the teacher's or mentor's capabilities.
"They just win no matter what."
- This quote encapsulates the essence of a winner's mindset, where the focus is on achieving success despite any obstacles or poor conditions.
Replicate Before You Iterate
- Initially, it is important to replicate a mentor's or teacher's methods precisely to achieve similar results.
- Understanding why something works by replication allows for better innovation and iteration later.
- Iteration without replication can lead to misunderstanding the fundamental reasons for success.
- Learning from multiple sources and combining their teachings can lead to improved outcomes and innovation.
- Commitment to learning and executing is key, with the understanding that every experience teaches what to do or what not to do.
"I will do everything they said to the t to replicate what they've done."
- This quote emphasizes the strategy of precisely following a mentor's guidance to achieve the same level of success before attempting to improve upon it.
Winning as an Inevitability and Overcoming Limiting Beliefs
- A determined learner views winning as inevitable, regardless of the number of attempts or teachers.
- Believing that what works for others can also work for oneself is crucial to overcoming self-imposed limitations.
- Blaming external systems or teachers for one's failures is counterproductive.
- The goal is to prove to oneself the ability to succeed, not to validate the inefficacy of the system or the incompetence of the teacher.
"There's no way that this is impossible. There's no reason that Facebook ads can work for other people's businesses, not mine."
- This quote reflects the speaker's belief in the possibility of success in any venture, as long as one is willing to find the way to make it work.
The Futility of Proving Others Wrong at One's Own Expense
- Trying to prove a teacher or system wrong by failing is likened to self-sabotage.
- Success is the best way to demonstrate someone else's ineffectiveness.
- Winners focus on their own growth and success rather than on discrediting others.
"Like, you want to sacrifice your outcome, your success, because you want to show that someone else is bad."
- This quote criticizes the mindset of individuals who would rather fail to prove a point about someone else's shortcomings instead of focusing on their own success.
Winners Win Because of Who They Are
- Winning is a result of one's character and approach to life, not external events.
- Winners have an inherent quality that drives them to succeed regardless of circumstances.
- The essence of a winner is to continuously strive for victory, embodying resilience and determination.
"Winners win, and they win because of who they are, not because of what happens to them."
- This quote concludes the discussion by asserting that the core of a winner's identity is the relentless pursuit of success, independent of the challenges faced.